Wanting to be rich might be a strong motivator for many. While the definition might differ based on individual needs and desires, we could agree that reaching a million-dollar net worth is often viewed as a significant financial milestone. Not only does it symbolise a sense of achievement, but it also suggests having sufficient resources to contemplate early retirement or embrace a more self-indulgent lifestyle.
However, the once-elusive dream, perhaps short of winning the top Toto prize by Singapore Pools, may now be within closer reach for many. With the rise in household income and asset prices (ahem, million-dollar HDBs), a growing number of individuals are attaining millionaire status. Additionally, the influx of high-net-worth individuals (HNWIs) relocating to the city-state has contributed to this growing trend.
There are 244,800 Millionaires (Including 30 Billionaires) In Singapore
With the population size in Singapore steadily increasing over the last decade, it is natural to expect a corresponding increase in the number of millionaires. However, the million-dollar question (pun intended) remains: just how many millionaires are there in Singapore?
According to the latest 2024 World’s Wealthiest Cities Report by Henley & Partners, Singapore boasts 244,800 resident millionaires, 336 centi-millionaires, and 30 billionaires, all with liquid investable wealth of at least US$1 million (S$1.35 million), US$100 million (S$135 million), and US$1 billion (S$1.35 billion), respectively. The report also highlights that this figure includes around 3,400 HNWIs who relocated to Singapore in 2023 alone.
Given Singapore’s population of around 6 million people, this translates to approximately 4 out of every 100 people being millionaires. This positions Singapore as the fourth-ranked city for millionaires, trailing behind New York City and the Bay Area in the United States, as well as Tokyo, Japan. It also represents a 64% growth in the number of millionaires in Singapore from 2013 to 2023.
Read Also: Top 10 Richest Billionaires In Singapore And How They Earned Their Wealth
What It takes To Be Considered As A Millionaire
Based on the definition provided by the investment immigration consultant, an individual’s liquid investable wealth encompasses holdings in listed companies, cash savings, and debt-free residential properties.
In other words, the report does not include individuals who may be running their own private business(es) or have investments in private equities. Furthermore, it does not take into account individuals who own residential properties on mortgages, even if their values exceed a million dollars.
Another area where it might have an impact is CPF savings. Since CPF members are only allowed to withdraw at least S$5,000 or any amount in excess of the cohort’s prevailing Full Retirement Sum (FRS), around 315,560 members under age 55 may not have their CPF holdings recognised towards their millionaire status, despite having CPF balances of $500,000 or more.
Read Also: How Much CPF Savings Should You Have At Every Age Group
Why There Are So Many Millionaires In Singapore
Despite the strict criteria for defining a millionaire, Singapore is home to more millionaires than bigger states like London, Los Angeles, and Hong Kong. This raises the question, Why? Here are some possible explanations:
Firstly, the nation’s sustained economic growth and better education have benefited Singaporeans with access to good-paying jobs. This, in turn, has enabled many to save and invest in appreciating assets like property, which has outpaced inflation rates.
Secondly, Singapore’s stable political climate, pro-business policies, and attractive tax incentives have lured foreign investments from multinational corporations to establish their regional bases and consequently, bring top foreign talents to the city-state. Moreover, Singapore’s high standard of living, safety, access to quality healthcare, and education have positioned it as a preferred destination for HNWIs and their families, leading to a high rate of migration in recent years.
How To Be A Millionaire In Singapore
This leads us to question how we too could join this growing elite gang of millionaires, especially as Singapore is expected to unseat Tokyo as Asia’s wealthiest city very soon.
According to the 2023 Global Wealth Report by Credit Suisse and UBS, the wealth per adult in Singapore is around US$382,957 (S$516,992), which has grown by approximately 6% per year since 2000. This puts the average Singaporean within one-third of reaching millionaire status.
As the adage goes, “all roads lead to Rome.” Similarly, there are several paths that we could take to become a millionaire in Singapore.
The first is through employment, which is also the safest route. By upgrading and upskilling, we could not only take on higher-value jobs but also remain employable for a longer period of time. This would increase our income over our lifetime. Second, we could also take on an entrepreneurship route, whether full-time or as a side hustle, to diversify our income sources. Third, we could invest in high-yielding asset classes, such as equities or properties, to increase our wealth over time.
That said, having a million dollars is not the be-all and end-all. While we may strive for our goal, we should ensure to spread our investments across different asset classes and schemes to ensure a more balanced approach to retirement savings.
Read Also: Retirement Planning In Singapore: How Much Do I Need To Save And Invest To Retire At 55?
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